Shop Health

Service Metrics: Key Performance Targets Every Seller Should Track

12/29/2024

Hi, Seller!

To maintain good shop performance on TikTok Shop by Tokopedia, you need to meet a set of platform standards known as service metrics. These metrics reflect your shop's reliability, fulfillment quality, and customer satisfaction. Let’s learn what they are and how to improve them!

Where can I monitor all service metrics?

You can find and monitor all your service metrics in the Shop Health section of the Seller Center.

Service Metrics: Key Performance Targets Every Seller Should Track

To maintain your store performance on TikTok Shop by Tokopedia, there are several key service metrics that you must monitor. Each metric has a specific target that needs to be achieved to ensure a positive buyer experience and to keep your account safe from penalties. Here’s the full overview:

Metric	Definition	Examples / Calculation
Seller-Fault Cancellation Rate (SFCR)Full guide read here	Percentage of orders (over 7 days) cancelled due to seller’s fault (e.g., no stock, wrong pricing, late handover).Target: Less than 2.5%	Sample CalculationIf 100 orders are placed, 20 cancelled by seller + 5 auto-cancelled = 25 cancellations → SFCR = 25/100 = 25%
Late Dispatch Rate (LDR)Full guide read here	Percentage of orders (within 7 days) not updated to “Shipped” within SLA.Target: Less than 4%
Fast Dispatch Rate (FDR)Full guide read here	Percentage of paid orders (over 30 days) handed over and scanned by LSP on time.Target: More than 95%	Sample Calculation You received 100 paid orders over the past 30 days, 95 orders fulfilled the fast dispatch criteria. → FDR = 95/100 = 95%
Defective Order Return/Refund RateFull guide read here	Percentage of all orders (over 30 days) returned by customers due to product defects.Target: Less than 1.5%	Examples of order returns or refunds that add to your Defective Order Return/Refund Rate include: Returned orders with verified product quality problems Returns raised due to defective or damaged products, empty packages, irrelevant products in the packages, inconsistent or incorrect products, wrong or missing items packages, and lost and damaged packages
Negative ReviewsFull guide read here	1–2 star ratings, categorized into product-related and service-related.Target: Keep at a minimum (no fixed %)	Seller-related Negative Reviews are categorized into service and product-related issues. These exclude negative reviews due to logistics or delivery issues. These reviews are further broken down into the following. Product-related Negative Reviews: Negative reviews concerning product quality and function. Service-related Negative Reviews: Negative reviews concerning service towards the customer, including complaints about missing or incorrect items, inadequate/unsatisfactory customer service responses, and similar issues.

What happens if I do not meet the targets above?

Metric	If Target Is Not Met	Additional Penalty
Seller-Fault Cancellation Rate (SFCR)	≥10% & <30% → Order volume limited to 90% of daily average ≥30% & <50% → Order volume limited to 70% of daily average ≥50% → Order volume limited to 50% of daily average	≥10% → 2 Violation Points
Late Dispatch Rate (LDR)	≥10% & <30% → Order volume limited to 90% of daily average ≥30% & <50% → Order volume limited to 70% of daily average ≥50% → Order volume limited to 50% of daily average	≥10% → 2 Violation Points
Fast Dispatch Rate (FDR)	If rate <95% → Orders considered late, may affect account health and lead to enforcement actions	–
Defective Order Return/Refund Rate	If rate >1.5% → Enforcement action may apply	>1.5% → 2 Violation Points
Negative Reviews (NRR)	High NRR may trigger enforcement actions depending on customer feedback type (returns, refunds, complaints)	Repeated offenses = heavier penalties

Where Can I Appeal my Violation?

If you receive a notice or warning of infringement and believe TikTok Shop by Tokopedia made an error, you may appeal or dispute the claim by raising a ticket/appeal in the Seller Center.

Common Mistakes and How to Avoid Them

Even though the service metrics look simple, many sellers still make avoidable mistakes. Here are the most common issues and how you can prevent them:

Metric	Common Mistakes	Tips to Avoid / Fix
SFCR (Seller-Fault Cancellation Rate)	Cancelling orders due to out-of-stock items or wrong pricing.	Always keep inventory updated, double-check product pricing before publishing, and use stock alerts.
LDR (Late Dispatch Rate)	Forgetting to update orders to “Shipped” within SLA.	Set daily reminders to update shipping status, and hand over parcels to logistics on time.
FDR (Fast Dispatch Rate)	Orders handed over late to logistics providers.	Prepare packing in advance, especially for peak hours. Hand over all orders before the cut-off time (15:00 WIB).
Defective Order Return/Refund Rate	Sending damaged, wrong, or incomplete items.	Do quality checks before packing, use protective packaging, and include all items/accessories.
Negative Reviews	Buyers leaving low ratings due to missing items or poor communication.	Communicate clearly with buyers, provide accurate product descriptions, and resolve complaints quickly.